Even with the arrival of the much-hyped Beijing Olympics, the Chinese stock market remains on a serious downer.

Yesterday, China’s benchmark Shanghai Composite Index dropped 5.2 percent after economic data revealed wholesale price inflation jumped to its highest level in 12 years in July.

However, Taipan Daily editor Justice Litle says China’s long-term outlook remains strong - and some China plays look more favorable than they have in years. Here are Justice’s six reasons why the China bears are wrong…

Investors better keep an eye on bonds this week.While the stock market may be more fun to follow, fixed income is often a stronger gauge of investor expectations of the economy, future U.S. Federal Reserve policy, and inflation.

In our constant travels for Without Borders, we look for progressive, undervalued international investment opportunities in booming economies with governments that treat capital well. To even begin to make the cut, the countries also have to possess multiple economic growth engines, open trade and business freedom.

Chinese stocks dropped further 3.9% this morning, sending the Shanghai Composite Index to 50% below its October peak. The index includes all the 862 companies on the larger of China’s two stock exchanges.

“Even while China’s export growth is slowing as a result of the economic slowdown in the West,” says Chris Mayer in The Daily Reckoning, “its economy is continuing to hold up remarkably well as domestic and regional demand picks up — and the country’s appetite for imports is helping the emerging markets to withstand the US slump.”

Last year, the Chinese stock market turned in one of the greatest performances in stock market history. The Shanghai Composite Index climbed as high as 128%… and finished the year with a 97% gain.